2 comments:

But I think a 4 percent NGDP target is just too low. Monetary asphyxiation time.

Maybe 5 or 6 percent NGDP is a good target.

As, say, 6 percent, we know we are giving the engine plenty of gas, rewarding risk-taking etc. Yet, there is no threat off "runaway" inflation, as we are at 6 percent NGDP.

Unless there is an actual contraction of economic output, the highest rate of inflation would be 6 percent. In a normal time, we might see 3 percent inflation--and btw, the Aussie Reserve Bank targets 2-3 percent inflation, and I think Israel does a 1-3 percent band target.

We got to be very careful with GPD levels since it can be risky to go ahead with proper awareness, I always keep myself up to date with situation and trade only through long term, it helps a lot to work with broker like OctaFX since it’s only through them that I get comfort and that’s to do with their mighty bonus which is up to 50% and is use able too, so that’s why I like it ever so much and helps me work nicely.